Wild Week for US Market with Sharp Rises of China Concept Stocks
The encouraging progress on the vaccine and the election results have pushed US stocks back to high levels.
Joseph R. Biden Jr. was elected the 46th president of the United States on Saturday, November 7. During the process of a large part of the election map turning blue, the stock market in the US reacted wildly.
Also, encouraged by the heartening news on the vaccine’s research progress, the market opened high today, November 9, led by airline and technology stocks.
Among all the rising stocks, China Concept Stocks played a blinder. The S&P US-listed China 50, an index that includes the 50 most representative Chinese stocks, gained 62% in the recent year and surged 8.55% in seven days since last Monday.
Partially caused by the postponed IPO of Ant Group, the China Concept Stocks plunged last week; they have since risen back to a normal level.
NIO (NIO:NYSE) became the winner this week, as its stock price sharply rose by over 36%, marking a market capitalization of over USD 56 billion, even surpassing some large auto companies like Ford (F:NYSE) of USD 30.9 billion and Ferrari (RACE:NYSE) of USD 51.6 billion.
The e-commerce stocks, such as Pinduoduo (PDD:NASDAQ) and JD (JD:NASDAQ), also gained. However, names active in the video industry went down, with an unclear relation to the Kuaishou’s IPO on the Hong Kong Stock Exchange.
In general, Chinese stocks have been showing their strong resilience to the uncertainty in the global economy, outperforming the S&P 500 during the year, especially in new energy vehicles firms. The US market is now going back to its active period. But investors should still be careful of the fluctuations and overshooting after making big gains in the market.